The consumer’s widespread acceptance of floating luxury vinyl tile (LVT) and fiberglass sheet vinyl continues to drive an estimated double-digit growth for suppliers, distributors and retailers alike. The only thing threatening the trend from continuing in the years to come is the potential commoditization of the category.
Catalina Research estimates that by year-end, the entire U.S. vinyl floor market will have grown an additional 7.9 percent in value to a record $2.27 billion.

Mannington expanded into the LVT market eight years ago and is still posting strong double digit growth — 35 percent from the category this year — according to David Sheehan, vice president of resilient business, Mannington. The company’s mechanically locking LVT business, introduced in 2010, is up 42 percent.
“Click is driving the growth in our LVT business big time. If you’re not in click LVT you’re not growing like we are,” said Sheehan.

LVT in all of its forms — be it dry back, grip-strip, click or loose lay – is taking share from every other category, including carpet, said insiders.
The U.S. LVT market, however, is under attack by low cost, low quality imports from Asia, according to Allen Cubell, vice president, resilient product management, Armstrong.

“Everybody in Asia with a factory is jumping into click LVT with both feet,” said Cubell. “That’s driving commoditization and unfortunately there are retailers willing to take the risk. It’s a real concern seeing guys at Domotex touring Asia and creating a supply chain that drives prices down. That’s exactly what happened to laminate.”
Fortunately for the category, there remains enough differentiation throughout the LVT segment to command price points upwards of $4 or $5 per square foot, said Cubell, adding that Armstrong is up 50 percent this year on its upscale Alterna line of groutable LVT.

“Alterna is our fastest growing product and it’s not off a small number base and it’s not what anyone would consider cheap,” he said. “We’re selling Alterna in the millions and millions of square feet.”
Karndean Designflooring has also maintained double digit growth, according to Michael Lang, senior marketing manager, by providing upscale clientele customizable LVT in various plank widths and lengths as well as borders and accent pieces.
“People in our segment are willing to pay for what they want,” said Lang. “Our message has always been one of premium product, premium service and a competitive price.”
Vinyl sheet
Both felt-backed and fiberglass are expected to see double digit growth this year.
Some industry insiders said that fiberglass and alternative floating vinyl sheet are positioned to take share from traditional felt-backed sheet vinyl as well as from other market segments such as carpet, entry-level ceramic, laminate and engineered wood. Fiberglass, according to some industry executives, will have grown by 15 percent by year end.
Paul Murfin, president of IVC US, which invested $75 million in its new Dalton fiberglass facility said he believes there is a shift towards this product. “I definitely see the momentum continuing as consumers start to recognize and appreciate the benefits the category offers in addition to ever improving realism in designs.”

Congoleum, which is the leader in the manufactured housing market, reported double-digit growth in both its felt-backed and floating AirStep series of sheet vinyl, according to Pat Buckley, vice president of product management, Congoleum.
“A lot of property management is moving away from carpet to sheet vinyl because they don’t want to replace the floor every time a tenant moves out,” said Buckley. “You don’t have to do that with AirStep, where you’ll get better visuals that will last for two or three tenants. We’re also seeing very substantial double-digit growth from manufactured housing. They like that our felt product goes down so easily and is forgiving, where fiberglass is not.”
Executives at Armstrong and Mannington also reported growth in their felt-backed business but said it’s being outpaced by their fiberglass sales.

“Felt is still a very important category and continues to sell at low, medium and high price points,” said Sheehan. “But there’s no arguing that fiberglass is outpacing and is taking share from felt.”
Vinyl pricing
Vinyl floor prices have remained stable despite increasing pressure by rising raw material costs and industry-wide pressure to meet the demands of a frugal consumer base.
“The greatest challenge we face is the consumer trading down on price,” said Dennis Jarosz, senior vice president of sales and marketing, Congoleum. “During the economic downturn there’s been price erosion and a real trend towards lower price points.”

The category is likely to succumb to increases in raw material costs due to demand, inflation and the price of shipping. But insiders said that it will still be able to maintain a better value proposition than other categories that have recently posted increases such as engineered and solid hardwood.

“There’s pricing pressure already because currencies around the world are appreciating vs. the dollar,” said Dave Reichwein, president and CEO, FreeFit. “Most resins being used now come from South Korea. There’s both inflationary and currency adjustments at play.”